Shares of the former tech darling jumped more than 4% following the company’s stronger-than-expected profits and iPhone numbers.

The report offers a glimpse inside Apple as the company continues to grapple with increased competition in the increasingly-mature smartphone industry from Samsung and others. There have also been concerns about iPad production cuts and pressure on profit margins.

Apple said it earned $6.90 billion, or $7.47 a share, last quarter, compared with a profit of $8.82 billion, or $9.32 a share, a year earlier. Analysts had been calling for EPS of $7.32.

Apple said it sold 31.2 million iPhones last quarter, compared with 26 million the year before and well above estimates for 26.5 million.

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However, the company said it sold 14.6 million iPads, down from 17 million the year before and shy of the Street’s view of 17.8 million. Apple said it shipped 3.8 million Macs, down from 4 million the year before and below estimates for 3.9 million.

Looking ahead, Apple sees fiscal fourth quarter revenue of $34 billion to $37 billion, compared with consensus calls for $37.05 billion. While that is shy of forecasts, the company is known for issuing conservative guidance.

Concerns about Apple’s ability to continue to innovate have helped drive its stock down 21.3% so far this year, badly under performing a 13.9% jump for the Nasdaq 100 and a 27.8% rally for tech giant Google (GOOG).

While earnings season used to be a time to celebrate for Apple shareholders, the company has struggled after posting results lately. The stock has declined an average of 4.4% after the past four earnings reports, although that was skewed by a 12.4% next-day plunge after posting results on January 24.